NOTE G - CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES

The Company considers all highly liquid marketable securities with an original maturity of three months or less to be cash equivalents. Cash equivalents include money market funds. The Company deposits its cash in high quality financial institutions. The balances, at times, may exceed federally insured limits. Money market funds are reported at fair value determined using quoted prices in active markets for identical securities (Level 1, as defined by FASB ASC 820).

The Company has classified all marketable securities as available-for-sale which requires the securities to be reported at estimated fair value, with unrealized gains and losses, net of tax, reported as a separate component of stockholders' equity. Highly liquid, tax-exempt variable rate demand notes with put options exercisable in three months or less are classified as marketable securities.

At September 30, 2018 and December 31, 2017, cost for marketable securities was determined using the specific identification method. A summary of the amortized costs and fair values of the Company’s marketable securities at the end of the periods presented is shown in the following table. All of the Company’s marketable securities are classified as Level 2, as defined by FASB ASC 820, with fair values determined using significant other observable inputs, which include quoted prices in markets that are not active, quoted prices of similar securities, recently executed transactions, broker quotations, and other inputs that are observable.



	(In Thousands)
	MARKETABLE SECURITIES
	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
September 30, 2018
Tax-exempt Municipal Bonds	$	29,606	$	29,541	$	-	$	65
Variable Rate Demand Notes		72,975		72,975		-		-
Total Marketable Securities	$	102,581	$	102,516	$	-	$	65

December 31, 2017
Tax-exempt Municipal Bonds	$	30,103	$	29,994	$	-	$	109
Variable Rate Demand Notes		114,258		114,258		-		-
Total Marketable Securities	$	144,361	$	144,252	$	-	$	109

Proceeds from maturities and sales of available-for-sale securities totaled $51,866,000 and $19,692,000 for the three month periods ended September 30, 2018 and October 1, 2017, respectively, and totaled $126,532,000 and $84,942,000 for the nine month periods then ended, respectively. There were no gross gains or losses related to sales of marketable securities during the same periods. Net unrealized gains (losses) included in other comprehensive income were $(39,000) and $18,000 before taxes for the three month periods ended September 30, 2018 and October 1, 2017, respectively, and were $43,000 and $53,000 before taxes for the nine month periods then ended, respectively. No unrealized gains or losses were reclassified out of accumulated other comprehensive income during the same periods.

The contractual maturities of the marketable securities held at September 30, 2018 are as follows: $14,316,000 within one year; $28,573,000 beyond one year to five years; $13,195,000 beyond five years to ten years, and $46,432,000 beyond ten years. All of the instruments in the beyond five year ranges are variable rate demand notes which can be tendered for cash at par plus interest within seven days. Despite the stated contractual maturity date, to the extent a tender is not honored, the notes become immediately due and payable.